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Case Study Report a Problems Analysis on the Organisational Structure and Strategic Operation of Engineering Inspection & Insurance Co

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Case Study Report: A Problems Analysis on the Organisational structure and Strategic Operation of Engineering Inspection & Insurance Co.
1. Circumstances and Several Main Problems of EIIC at 1991
1.1 Changes in the economic environment and its impacts to EIIC
Engineering Inspection & Insurance Co. (EIIC) is a small and medium-sized insurance Enterprise depended on its distinctive competence, machinery and boiler inspection service. EIIC was a highly successful company before 1990. However the economic environment changed progressively when EIIC reached its flourishing stage. These changes reformed the new development road for insurance industries and consequently generated enormous troubles to EIIC.
At the early 1990s, …show more content…

1.2 Structural Problems that Stop the Growth of EIIC
After analysing the big picture of insurance circumstance, this chapter will discuss the main problems of EIIC in terms of structural operation and strategic operation in other to find the most critical fault and some assumed solutions to fix it.
The increasing employee turnover is a very apparent sigh of company dysfunction at EIIC’s organisational structure. According to the case files, there were a lot of complex conflicts between managers and employees, branch offices and headquarter, technical personnel and administrative personnel. The most remarkable conflict came from branch managers and the chief inspectors, which had been finely noticed by EIIC’s top officers. So the high employee turnover rate is caused by the current ineffective organisational structure of EIIC. Both of chief inspector and the bank manager have the right to make the final decision of whether to insure certain risks or not. What’s more, it is impossible for bank managers to monitor their inspection workers. In conclusion, the disorganization of the management layer caused more and more conflicts among the staffs and consequently beat down the employee morals.
1.3 The Most Critical Problem for EIIC: The Heavily Cost of Inspection
Unfortunately, out of management level, EIIC also have problems in the term of

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